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Identify the problems of the banking sector and proposals developed comprehensive strategy to address them
07/06/2012 2:35
In a seminar Iraqi Institute for Economic Reform
Baghdad Yasser incumbent
stood and workshop economic when the main problems and obstacles that hinder the performance of banking operations in Iraq through four working papers prepared by specialists and presented them in the workshop organized by the Iraqi Institute for Economic Reform Based on the importance of the banking sector in development.
and chaired the Business Symposium, an economist and consultant in one of the international institutions Amer Jeweler and supervised by Dr. Mahdi Al-Hafiz and was attended by a group of experts and professionals in the public and private sectors.
and the worksheet is the first of Dr. Ahmed Albatall has carried the title requirements of the development of the banking industry for in Iraq which he had to give Iraq the importance of large to the issue of banking reform and liberalization by issuing legal banks No. 94 and the Central Bank No. 54 and the two issued in 2004, that promise of the most important laws that included a clear vision of the role of banks in the light of the implementation mechanisms of the market economy, but he wondered where the fault?
and replied, is his question by saying that the banking sector did not benefited from the advantages of these laws for several reasons, including political and economic conditions which led to the continuation of the old laws and the window and that are inconsistent with phase transitions and requirements of the mechanism of market economy and this contradiction has contributed to the delay in developing the performance of the banking sector and get him away from playing its role in development.
hinted Albatall that although it the banking sector and after 8 years of attempts to reform managed to achieve remarkable development, which Acherth official statistical data for 2012 that the structure of the banking sector were 44 banks, 23 of them conventional and 11 Islamic and 10 branches of foreign countries.
said: But this issue of the private banks could not compete with banks, the banking sector government and this obstacle pay private banks to limited banking services, and if you add the suffering of the poor experiences Vtgd that it reflected on her performance, making it the lift from the roof of the guarantees, which led to the weak financial structure because of the reluctance of customers to deal with it because of the roof of the guarantees as well as some limitations in the new law of banks, especially articles 27 and 28.
then offered the second worksheet and tagged banking reform the government submitted a researcher Juman Hassan Ali, which confirmed that the economic situation in Iraq is reflected in the financial and banking sector and shows clearly the aspects of the vulnerabilities of financial systems and banking.
and pointed to low rates of contribution of the banking sector in the GDP to 1.85 percent in 2012 compared to neighboring countries where the percentage of contributing 11.9 per Saudi Arabia, 7.12 and 14.96 in the United Arab Emirates in Egypt reflects significant weakness in the hardness of the banking sector, and the Iraqi banking density remains low and does not exceed 2.0 percent, or by 45 thousand people per bank branch. either worksheet third diagnosed the problems and other challenges facing the banking sector, where displayed, an economist d. Majid picture, which focused on the weakness of the tradition of banking at home and that led to direct capital towards the outside due to the weak control and supervision and poor use of technology, pointing to the subjective factors related to the absence of banking policies and poor standards of operational and management and liquidity risk and the absence of standards of good governance, among others.
Suri pointed also to the weakness of the use of technological means and the absence of hedges of risks as well as integration of capital ownership administration and the weakness of the tradition of banking and banking culture has the public all these factors are painted gloomy picture for the banking sector, pointing out the issue of other very important when pointed to the weakness of the structure of the Iraqi economy, especially the private sector.
Then came the role of the worksheet fourth joint of the two economists, Walid Idi Director General at the CBI and d. Akram Abdel-Aziz Director General of the National Investment Commission, where paper focused on aspects of disability, among other facts of which indicate that most of the Iraqi banks in Iraq are working example venture deposits are safe, Frozen, this dye alone limit the movement of economic activity in Iraq and defined the indicators of growth required to pointing out that the statistics of the Bank Central has shown that the average liquidity of the banks operating in Iraq, 51 percent is higher than the percentage standard, amounting to 30 percent.
participated paper leaves the previous opinion when pointed to the weakness of the use of ATM and the imbalance in the banking culture so that 20 percent of the public reserves Pfoaúdha cash in banks and the remaining reserve where in the home confirms the weakness of a culture of savings Add to this the low-density banking where branch banking is one per 40 thousand people in total in Saudi Arabia, for example branches per 3500 and the weakness of credit facilities and other problems.
so, then look image banks distorted because of the challenges and problems faced but working papers did not publish washing only, but given the overall proposals are almost comparable and similar to that raised a summarized and works of the Institute to study and presented to the experts to come up with recommendations targeted for submission to the competent decision-maker and the proposals include the need to speed up the implementation of the decisions of the supervisory senior to restructure State-owned banks and most important of which cleaning budget for each bank and activation of a proposed new law for banks, government and the separation of capital ownership for the Board of Directors and re-composition of the Board of Directors and the application of the principles of good governance.
In summary, the proposals focused on visions of the future to repair the banking system and the need for a comprehensive strategy and variety to the development of the technique used in the banking system and to link banks, networks, communications and extensive information included in the scope of the adoption of methods of control and financial disclosure and accounting and the development of media awareness about banking and Hmagad of the iceberg and we are awaiting the recommendations Readers effective and influential in the banking sector to give a strong impetus towards service development programs.
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